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 LOS ANGELES, Nov. 10 /PRNewswire/ -- SunAmerica Inc. (NYSE: SAI) today announced record audited net income of $127.0 million for the year ended Sept. 30, 1993, compared to $76.8 million in 1992. Net income per common share in 1993 was $2.75, up 53 percent from the prior year's $1.80 per share. The company said that its results exceeded recent analyst estimates of $2.70 per share.
 On an operating basis, after-tax earnings before net realized investment losses were $141.1 million or $3.09 per share in 1993, up significantly from the prior year's $114.0 million or $2.77 per share. Operating net income, recently forecasted by investment analysts to be $3.00 per share for fiscal 1993, is considered a key measure of earnings performance.
 Net income for the three months ended Sept. 30, 1993 rose to $35.6 million or $.75 per share, up from $25.6 million or $.56 per share for the like period of 1992. Operating net income was $40.7 million or $.87 per share, up from $30.5 million or $.68 per share in the fourth quarter of fiscal 1992.
 "Our strategic decision to focus on the fast-growing retirement savings market is at the heart of the company's outstanding financial performance," said Eli Broad, chairman and chief executive officer. "Results for the year reflect a 19 percent increase in fee income and a 20 percent increase in net investment income, coupled with continued reductions in net realized investment losses and only a 2 percent increase in general and administrative expenses."
 The company's 1993 return on average equity reached 15.5 percent, up from 13.5 percent for 1992. "This performance was achieved despite the significant amount of excess capital the company is carrying and a $22.0 million special provision for future guaranty fund assessments," Broad noted. "Given our earnings momentum, SunAmerica is gaining recognition as an asset manager rather than a traditional life insurance company, which helped propel our market capitalization to approximately $1.8 billion at fiscal year-end."
 Fee income in 1993 totaled $134.3 million, nearly double its level just three years earlier. The company reported sales of $2.2 billion in 1993, 59 percent of which were derived from fee-based variable annuity and mutual fund products which the company has emphasized in recent years. Largely as a result of the successful introduction of its Polaris Variable Annuity earlier in the year, sales of variable annuities rose 35 percent to nearly $800 million.
 Net investment income for 1993 totaled $263.8 million, up from the prior year's $219.4 million. Total invested assets increased 9 percent in 1993 to $10.3 billion at Sept. 30 from $9.4 billion a year earlier.
 During 1993, the company reduced the net carrying value of defaulted investments (including bonds, senior secured loans and mortgages) to $60.8 million or 0.6 percent of total invested assets, its lowest level in more than four years. "The continued downward trend in net realized investment losses reflects the steps we've taken to enhance asset quality," Broad said.
 Assets owned or under management finished 1993 at $17.7 billion, up from $15.7 billion at year-end 1992, an increase of 13 percent. Shareholders' equity increased 52 percent to $1.1 billion, reflecting strong earnings performance and the offering of Series D Mandatory Conversion Premium Dividend Preferred Stock earlier in the year.
 SunAmerica is a financial services company which specializes in selling tax-deferred long-term savings products and investments to the expanding preretirement savings market.
 Condensed Consolidated Income Statement(a)
 (In thousands, except per common share amounts)
 Three months ended 12 months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Investment income $204,560 $199,006 $754,369 $763,013
 Interest expense (120,160) (132,921) (490,578) (543,629)
 Net investment income 84,400 66,085 263,791 219,384
 Net realized investment
 losses (7,746) (7,317) (21,287) (56,364)
 Fee income:
 Variable annuity fees 18,448 15,056 67,461 57,666
 Asset management fees 8,012 7,078 32,293 25,269
 Net retained commissions 6,921 5,031 23,658 18,855
 Trust fees 2,605 2,827 10,893 11,041
 Total fee income 35,986 29,992 134,305 112,831
 Other income and expenses:
 Surrender charges 2,474 2,870 9,766 14,291
 General and
 expenses (37,840) (39,970) (135,790) (133,058)
 Provision for future
 guaranty fund
 assessments (17,930) --- (22,000) ---
 Amortization of deferred
 acquisition costs (13,298) (12,498) (51,860) (48,375)
 Other, net 5,416 (2,229) 7,086 2,382
 Total other income
 and expenses (61,178) (51,827) (192,798) (164,760)
 Pretax income 51,462 36,933 184,011 111,091
 Income tax expense (15,900) (11,300) (57,000) (34,300)
 Net income $35,562 $25,633 $127,011 $76,791
 Per common share $0.75 $0.56 $2.75 $1.80
 Average common shares
 outstanding 42,144 38,833 40,255 38,342
 (a) 1992 results reflect the reclassification of SunAmerica Corp. preferred stock to SunAmerica Inc. Series C Preferred Stock.
 -0- 11/10/93
 /CONTACT: Jana Waring Greer, 818-705-8129 (before 7:30 a.m. PST), or 310-772-6532 (after 7:30 a.m. PST), or Patricia Harden, 310-772-6535. both of SunAmerica/

CO: SunAmerica Inc. ST: California IN: FIN SU: ERN

NY-LM -- LA015 -- 2601 11/10/93 09:04 EST
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Publication:PR Newswire
Date:Nov 10, 1993

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